2. Good morning!

3. Modern business operations in the Czech Republic …..since 1989 Good morning!

4. Reminder: An appreciation of dates Pre 1914 –Austro-Hungarian empire; Czechoslovakia created 1918 1918-1939 1939-1945 –German occupation 1945-1989 –Communist regime (Influenced by Russia) –“Prague spring” 1968 –“Velvet revolution” November 1989 Post 1989

5. Traditional industries (1) “Heavy industry” –Engineering Skoda Tesla –Mining “Black” coal “Soft” coal Clay Graphite Silver  Uranium

6. Traditional industries (1) “Heavy industry” –Engineering Skoda Tesla –Mining “Black” coal “Soft” coal Clay Graphite Silver  Uranium Why did the uranium mines close? The Czechoslovakia (Czech Republic) had/has no means of processing raw uranium into usable uranium, and their former guaranteed market place (USSR) no longer existed.

7. Traditional industries (2) Specialised –Chemical –Medical –Shoes –Glassware –Contact lenses –Films –Musical instruments etc, etc, etc………

8. Traditional industries (3) Other –Brewing …….also, wines and spirits –Agribusiness Livestock  milk/cheese/meat Timber Fruit/vegetables etc, etc, etc………

9. During the years up to 1939 Czech business was oriented towards the west Czechoslovakia was the 10 th most developed industrialised country in the world

10. After 2 nd World War: Communist era Czechoslovakia became the “workshop of the Soviet bloc” 70% of exports went to Soviet bloc Series of yearly and 5-yearly plans

11. In more detail….in 1974: Skoda Tesla Bata

12. In more detail….in 1974: Skoda Tesla Bata

13. Europe in the 1970’s

14. 70% 30% Europe 1978: Czechoslovakia was considered the workshop of the Soviet bloc

15. Europe in 1990 70% 30%

16. Europe in 1990 70% 30%

17. Europe in 1993 70% 30% Lost exports eastwards

18. Europe in 1993 Czech (and Slovak) Republics have to look for other markets

19. Nowadays European Union is the biggest trade partner In 2008, more than 84% exports went to the EU-15 countries Sharp increase of foreign investment, especially from Germany

20. Current Czech manufacturing industries include: Automotive Aerospace Electrical engineering and electronics High-tech engineering Life sciences Medical devices

21. Automotive industry in the Czech Republic

22. Passenger car production (per 100 residents) Source: Automobile Industry 4/2006

23. Some recent foreign investments in the Czech automotive industry Volkswagen – sole owner of Skoda Toyota-Peugeot-Citroen Iveco

24. Some Czech automotive component suppliers

25. Current Czech manufacturing industries include: Automotive Aerospace Electrical engineering and electronics High-tech engineering Life sciences Medical devices

26. Aerospace industry in the Czech republic 10,000 people working across the country10,000 people working across the country

27. Current Czech manufacturing industries include: Automotive Aerospace Electrical engineering and electronics High-tech engineering Life sciences Medical devices

28. Electrical engineering and electronics

29. Examples of who does what: (1) consumer electronics Panasonic –flat-panels TVHitachi –flat-panels TVIPS Alpha –LCD modules Bang & Olufsen –various consumer electronics Candy –refrigerators

30. Examples of who does what: (2) automotive Kostal –electronic modules Visteon/Autopal –lighting Tyco Electronics –various components Siemens VDO –Automotivecontrol modules, sensors, panels

31. Examples of who does what: (3) IT Foxconn –PC routers Asus –PC –High-tech repair centre FIC –PC Inventec –PC

32. Current Czech manufacturing industries include: Automotive Aerospace Electrical engineering and electronics High-tech engineering Life sciences Medical devices

33. High-tech engineering Between 80% and 90% of production is exported R&D driven Includes: –Instrumentation –Machine tools –Railway industry

34. Instrumentation Around 4,000 specialised workers in this sector, eg: –Central Bohemia region 13.9% Siemens and Linet –Olomouc region 12.5% Meopta – optics and Invensis appliance controls –Prague 12.4% Honeywell

35. Machine tools Approx 50 companies About 90% of production are specialist cutting machines. Approx 80% are exported to: –(mostly) Germany –Other EU countries –US & Canada –and: China, Russia, India and South America

36. Railway industry (Includes tramways) Three large factories: Prague, Plzen and Koprivnice 30% turnover is exported worldwide

37. Current Czech manufacturing industries include: Automotive Aerospace Electrical engineering and electronics High-tech engineering Life sciences Medical devices

38. Life science and Medical devices Life science –Especially Biotech and pharmaceutical industries Medical devices, eg: –Hospital beds –Ventilators –X-ray equipment –Dental technology –Mobile hospitals –Technical gases

39. Links Czech Statistics Office: http://www.czso.cz/eng/redakce.nsf/i/home http://www.czso.cz/eng/redakce.nsf/i/home Czech Republic (Official website): http://www.czech.cz http://www.czech.cz

40. Thank you!